The housing market continues to show signs of slowing, but very little evidence of the “bursting bubble” that has been predicted for more than three years by some prognosticators. One sign of slowing is the level of unsold new homes.

There are now nearly 200,000 more unsold new homes under construction than there were just five years ago. Rapidly rising sales have masked the surge in construction.

Most analysts focus on the months of new-home supply, which is shown below.